Advanced Micro Devices (AMD), world's second largest chip maker, is planning to release a new brand of its processors for budget conscious users. The new product family will be called the "Sempron" and will ship in the second half of the year, according to AMD.

The Sempron family of processors is expected to take over the company's 32-bit Duron processors. AMD did not comment on the architecture of the new chips and stated that further details will be made public when the new processor family is set to release.

Just like the Duron microprocessors, these processors will be used in the low-end or budget level systems for day-to-day tasks. AMD sees the budget market as an evolving segment.

AMD will ship the mobile and desktop processors to consumers in the second half of the year.

This move is also taken to compete with Intel's Celeron microprocessors. According to sources, Intel is planning to release a new range of its high-end and low-end processors. The upcoming high-end Pentium 4 chips are expected to clock around 3.6 GHz and the upcoming Celerons, however, are expected to clock around 2.8 GHz, said sources.

Sources reported that Intel will most likely release the new chips around the same time frame as the new school year.